Central Corridor: Struggling businesses say the proof will be in the passengers

Sita Evans maintains the reptile cages Thursday at Twin Cities Reptiles on University Avenue in St. Paul. The owners of the business say they've been hurt by nearby construction of the Central Corridor light-rail line. (Pioneer Press: Scott Takushi)

At Twin Cities Reptiles, all manner of geckos, pythons, giant tortoises and assorted amphibians are stirring. But the mice are toast.

Like the reptiles they breed, the owners of the largest supplier of snakes and amphibious pets in the state consider themselves survivors. Two years of construction of the Central Corridor light-rail line has been tough, even crushing, on businesses along the 11-mile route. Having dealt with torn-up sidewalks and shuttered street entrances, retailers are hoping for a more robust new year.

"I think pretty much anything is going to be better than the last year," said Sara Szabo, manager of the St. Paul store. "The further (rail development) gets along, the better it's going to be. Last year was hard.

Work continues on a Central Corridor station Thursday near Dale Street and University Avenue in St. Paul. Other than electrical work, all 18 stations of the light-rail line are structurally ready. (Pioneer Press: Scott Takushi)

We watched neighbor after neighbor fold shop and leave. Now, the majority of construction is done."

Officials at the Metropolitan Council see a silver lining.

The Met Council maintains that rather than hurt business prospects, the light-rail line has already helped seed more than $1.2 billion in development over the two-year construction period. Private projects such as the redevelopment of the Pioneer-Endicott and Rayette buildings in St. Paul's Lowertown are moving forward alongside public enterprises, including the recent openings of the Lofts at Farmers Market and the St. Paul Union Depot.

Eighteen residential and commercial-retail developments began construction or entered major planning along the line in 2012, according to the Central Corridor office.

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Eight of the developments are in St. Paul and 10 are in Minneapolis. Those 18 projects will offer nearly 2,300 housing units and more than 109,000 square feet of commercial and retail space.

"It's a pretty remarkable story about growth," said Met Council Chair Sue Haigh. "I think that what we're seeing is the rail line is attracting the market. Development is really around station areas. I think that it's very good news for these communities along the line -- they'll have access to housing and jobs. I'm not sure you'll find another place in the metro region where you're going to see this type of investment."

Haigh said it will be easier than ever to get employees to employers in the major job centers of downtown Minneapolis and St. Paul, as well as the University of Minnesota, and to promote that benefit nationwide.

While buses offer route flexibility, the fixed nature of light-rail tracks drives home the concept of a permanent commercial corridor, she said. Trains board faster and will have some priority at traffic signals, and they operate in their own dedicated right-of-way, so they don't have to compete with cars.

"To have easy access, it really helps to make the region more cohesive and to market the region as a region," Haigh said.

In St. Paul, city, state and Met Council money has helped ensure that many of the new housing units remain affordable, with developments targeted to seniors, youth and workers. At University and Prior avenues, Portico is building Prior Crossing, which will offer 44 apartments for homeless teens and young adults.

Habitat for Humanity plans to move its headquarters across the street from the site. The Central Exchange, Brownstone and City Limits projects will also offer affordable housing.

And there are more projects to come, say city officials.

St. Paul is receiving a state grant to help fund a $52 million to $54 million city-owned ballpark for the St. Paul Saints and student and amateur teams next to the Central Corridor maintenance facility in Lowertown. Shortly before Christmas, the city received three competing bids. The goal is to have the ballpark done by 2015.

Proponents of the light-rail line hope the ballpark and other development will draw rail passengers, a boon to businesses along the route.

Szabo, manager at Twin Cities Reptiles, is "reserving judgment."

"I ask people who are really excited about the light rail and say it's going to do wonderful things if they take the bus now," she said. "We've got buses that go by every 15 minutes. And they say, 'No.' If you don't use public transit now, why is light rail going to change that? I just hope that I see people riding it."

A block from her store, the Edge Coffee House at University and Raymond avenues closed not long ago.

The Edge Coffee House on University Avenue in St. Paul is one of 70 businesses along the Central Corridor route that have closed since major construction on the line began in March 2011. (Pioneer Press: Scott Takushi)

The Caribe restaurant also closed, but Foxy Falafel opened. Sharrett's Liquors has sold alcohol since 1977, but the owners wondered whether they would make it another year after construction eliminated a parking lane on University Avenue. So far, they have.

"It seems to be a little better. People are complaining less, and they seem to be able to get to our store," said Edward Kline, a manager at Sharrett's. "The biggest thing has been the loss of parking along University Avenue."

Son Truong saw preconstruction work such as underground utility relocation unfold in Lowertown in the summer of 2009, a year after he opened his Senor Wong restaurant at Fourth and Robert streets.

Almost four years have passed, and work continues to complicate parking and traffic access, though much of it in recent months has been related to the city's Fourth Street improvement project.

Truong took a $20,000 "forgivable" "Ready For Rail" loan to survive, but it hasn't been enough.

"I lost that in one month alone," he said. "No one wants to come down to a street that's all torn up. It's hard to find parking. People can't even find us."

He hopes to remain open to see the first passengers board the light rail in 2014, but he's not sure his business will make it.

"For the first couple years, I was very optimistic, very for this. I still am," Truong said. "But construction is pushing me to the breaking point."

The Central Corridor office reports that since major light-rail construction began in March 2011, 86 businesses have opened along the 11-mile corridor, 70 have closed, 16 have relocated off the corridor, and 22 have relocated from one point along the corridor to another.

Met Council officials say they and groups such as the city of St. Paul and the Central Corridor Funders Collaborative have made a concerted effort to keep small businesses afloat during light-rail construction, which is 84 percent complete.

The city's Ready for Rail small-business loan program has lent more than $2.6 million to upward of 160 restaurants and retailers, according to city planners. The loans are "forgiven," or converted to grants, at a gradual rate, and the loan principal disappears entirely if the business remains open along the corridor for five years.

Through a marketing contract administered by the city, billboards, bus ads and a new print directory of Central Corridor businesses have rolled out alongside OntheGreenâ Line.com, a website dedicated to events and promotions along the future light-rail route.

Nevertheless, a coalition composed of the St. Paul Chapter of the NAACP, nonprofits and minority-owned businesses continue to call for better documenting of construction's impact on small shops.

In response to their federal lawsuit, the Met Council and the Federal Transit Administration have released the latest draft of a court-ordered analysis, or supplemental environmental-impact statement. The Met Council will host two public hearings next month to discuss the draft document, which could be finalized between April and June.

The Jan. 10 meetings are scheduled at 8 a.m. at Model Cities, 849 University Ave. W. in St. Paul and 6 p.m. at Goodwill/Easter Seals, 553 Fairview Ave. N. in St. Paul. Public comments will become part of the official record shared with the FTA. The document is at tinyurl.com/csfvcs5, and available at libraries along the Central Corridor, or Green Line.

Central Corridor officials said heavy light-rail construction ended this month with more than 10 miles of roads and sidewalks rebuilt and double track installed. Other than electrical work, all 18 stations are structurally ready.

Next year will be dedicated mostly to installing electrical substations and overhead wiring for the light-rail trains and then testing the actual train cars and training drivers.

"It's actually incredibly exciting to be at this point in the development," Haigh said. "I want to thank all of the people who live along and work along the line. We're 84 percent complete. Construction is going to be much less intrusive next year."